Microsoft’s Purchase Of Nokia’s Phone Business Gets Chinese Approval
Finally, Microsoft can breathe easy, and Nokia can exhale.
About a month back there were reports of concern from Samsung and Google, over the Nokia-Microsoft deal.
The tech giants had approached the Chinese regulators and the Ministry of Commerce to conduct an anti-monopoly review, specifically in regards to patents related with wireless technologies.
Nokia has received an approval from the Chinese authorities to go ahead and sell its mobile phone business to Microsoft Corp., and there have been no request for it to change its patent practices. The deal was struck for $5.4 billion euros, however the Finnish company held back its patent portfolio as they are a promising source of future growth.
After the approval coming through from the Chinese regulators, the European Commission and the US Department of Justice and other jurisdictions; the price of Nokia shares rose by 2.9%.
Microsoft now enters a new era with its first Microsoft branded Nokia advertisement and coming together will surely bring to its portfolio, family devices and services leading to loyal customers.
In today’s world, Windows Phone has gained appreciation in the market and it is the fastest growing system in the smartphone market (this could also be because they have negligible market share at the moment and any gain seems to double their market share).
According to the IDC, Windows Phones hold one of the top-three positions among smartphones.
And now with Nokia mobile phone business, they will be targeting the affordable mobile device category too.
According to the deal, Nokia will see the end of production and will be focusing on networks, mapping services and technology development and licenses.
It has been reported that two Nokia plants will not be part of the deal.
Nokia’s former Chief Executive, Stephen Elop is said to become the executive vice president of the Microsoft Devices Group which will be in charge of the Lumia smartphones and tablets, Nokia mobile phones, the Xbox hardware, Microsoft Surface (they are a series of tablets created by Microsoft) and Perceptive Pixel (PPI) products (Perceptive Pixel Inc was a company that specializes in research, development and production of multi touch interfaces).
This deal will enable them to make affordable devices running on robust OS, as they now have in their repertoire, a deeper understanding of hardware and software, thus strengthening the demand for Windows devices worldwide.
Microsoft said that with purchase of Nokia, the end-user can expect better devices.
Originally published at Chip-Monks.
